Free Indiana Agency Practice Test — LicenseIQ

Question 1

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 2

Hoosier Realty offers 2.4% of the sale price to the buyer-side company on a $285,000 sale. The buyer's agent's split with her own company is 65%. How much does the buyer's agent receive?

Accepted Answer

Cooperative fee = 0.024 × 285,000 = $6,840, paid to the buyer-side company. Agent share = 0.65 × 6,840 = $4,446. $6,840 is the company's gross, and $2,394 is the company's retained 35%.

Question 3

A buyer's agent owes the seller (a customer)

Accepted Answer

IC 25-34.1-10-11(c) limits duties to the seller to honest treatment and not knowingly giving false information. Subsection (d) says there is no duty to investigate the buyer's finances.

Question 4

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 5

Which action by a seller's agent is NOT a breach of duty to the seller under Indiana law?

Accepted Answer

IC 25-34.1-10-10(e) expressly allows showing alternative properties and listing competing properties. The other choices reveal confidential information or fail the accounting duty.

Question 6

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 7

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 8

Under IC 32-21-6, an Indiana listing agent who knows a death occurred in a home

Accepted Answer

IC 32-21-6-5 says disclosure is not required. IC 32-21-6-6 bars intentional misrepresentation in response to a direct inquiry.

Question 9

A former client's confidential information may be disclosed after the agency ends if

Accepted Answer

IC 25-34.1-10-14(c) exceptions: disclosure required by law, the client's written consent, or the information becoming public from another source or through the client's own words or conduct.

Question 10

An Indiana managing broker's written office policy on agency must

Accepted Answer

IC 25-34.1-10-13(a) requires the policy to describe agency relationships and specifically permit or reject disclosed limited agency.

Question 11

After an agency relationship ends, which duties continue under IC 25-34.1-10-14?

Accepted Answer

IC 25-34.1-10-14(c) keeps only the accounting duty and the duty of confidentiality, subject to exceptions.

Question 12

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 13

When must a licensee give a prospective client the written office policy on agency?

Accepted Answer

IC 25-34.1-10-13(b) requires delivery when the relationship begins and before confidential information is disclosed.

Question 14

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 15

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 16

Under Indiana's agency statute, a licensee working with a person is presumed to

Accepted Answer

IC 25-34.1-10-9.5(a) creates a presumption of representation with exactly those two exceptions.

Question 17

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 18

Since July 1, 2024, Indiana law requires that an agreement to represent a buyer or tenant

Accepted Answer

IC 25-34.1-12-2 (P.L. 47-2024) applies the writing, expiration-date, three-business-day copy, and retention rules to buyer and tenant representation. Nothing is filed with the Commission.

Question 19

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 20

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 21

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 22

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 23

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 24

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 25

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Indiana real estate agency practice test

1. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

2. Hoosier Realty offers 2.4% of the sale price to the buyer-side company on a $285,000 sale. The buyer's agent's split with her own company is 65%. How much does the buyer's agent receive?

3. A buyer's agent owes the seller (a customer)

4. Which statement about dual agency is correct?

5. Which action by a seller's agent is NOT a breach of duty to the seller under Indiana law?

6. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

7. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

8. Under IC 32-21-6, an Indiana listing agent who knows a death occurred in a home

9. A former client's confidential information may be disclosed after the agency ends if

10. An Indiana managing broker's written office policy on agency must

11. After an agency relationship ends, which duties continue under IC 25-34.1-10-14?

12. Which of the following is a fiduciary duty an agent owes the principal?

13. When must a licensee give a prospective client the written office policy on agency?

14. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

15. A property manager owes fiduciary duties primarily to the:

16. Under Indiana's agency statute, a licensee working with a person is presumed to

17. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

18. Since July 1, 2024, Indiana law requires that an agreement to represent a buyer or tenant

19. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

20. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

21. Which fiduciary duty continues even after the agency relationship has ended?

22. An agency relationship can be terminated by all of the following EXCEPT:

23. A material defect that a seller/agent must disclose is one that:

24. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

25. The best way to create an agency relationship is a(n):

Sources